St. Albert was one of only two municipalities in the Capital region to record fewer housing starts in 2010 than the previous year but local industry players are touting the virtues of stability in the market.
Overall, residential starts were down 34 per cent in St. Albert, according to figures from Canada Mortgage and Housing Corporation (CMHC). This was due to a virtual shutdown in multi-family starts. Starts of single-family homes increased 15 per cent.
"The nice thing about what we're seeing now is stability in the market in that we are able to work on a consistent, constant basis," said Gary Acheson of Sarasota Homes, which builds exclusively in St. Albert.
Acheson said 2010 was a good year in the single-family segment and he's expecting to see a 20 per cent increase in his activity in 2011.
City figures show residential permit values for 2010 were $82 million, an increase of $2 million over 2009 but far from the $151 million recorded during the boom of 2006.
"It's different than the boom times. In the boom times, people could build a home and sell it no problem," Acheson said.
"Now it's a healthier market because you've got to go out and earn each transaction. I think the whole industry is going to have to work harder to do a better job for the consumer."
CMHC market analyst Richard Goatcher is expecting 2011 to start slowly then pick up steam. Overall, he thinks the final building volume will be very similar to what was posted in 2010.
"We see 2011 as similar to 2009 where the year starts off relatively slow because there's reasonable amounts of inventory in both the new and resale market," he said.
"The buyers' market is still here but we're expecting the transition into more of a balanced market as we move into the spring selling season and demand improves."
Non-residential
On the commercial and industrial side, permit values for non-residential construction in St. Albert were down 47 per cent from 2009.
Part of the reason is because 2010 didn't see a large-scale project like Hole's Greenhouses & Gardens' Enjoy Centre, explained business and tourism development director Larry Horncastle.
He described 2010 as an "OK year" and is expecting much the same for 2011 because St. Albert doesn't have much serviced commercial and industrial land available.
However, he thinks the city will see several areas get serviced this year, setting up a good year in 2012.
"My crystal ball says it will probably be a slow year in 2011. It will depend on how fast lots will be available," Horncastle said. "I'm hoping for bigger things in 2012 and beyond."
